Specialist PPI service becomes ABS

A specialist PPI service, which deals only with claims by people subject to some form of insolvency process, has been granted an ABS license.

Ferguson Financial said it was the first firm of its type to become an ABS. Until now, it has been operating as a separate business unit within Ferguson Solicitors, a City employment law practice which operates mainly in the banking sector.

"The majority of our work is managing mis-selling complaints on behalf of individuals subject to a bankruptcy order or an IVA," general manager Maurice Power said.

"Managing PPI claims where there is insolvency is very complicated. It is not something most claims management companies understand and this would affect their ability to help people claim compensation."

Power said work was referred to the firm by trustees in bankruptcy or insolvency practitioners in the case of an IVA.

"We are not aware of any other service provider to insolvency practitioners which has made this move," he said.

"With ABS status, we will have the flexibility to look at other markets and grow the business, and to consider external funding."

Charles Ferguson (pictured), partner and founder of Ferguson Solicitors, is managing director of Ferguson Financial. Barrister James Boddy, an employment specialist, becomes operations director, and Jonnie Jones, a non-lawyer, financial and commercial director. Ferguson will be the COLP and Jones the COFA.

Power said he believed the PPI market would have a limited lifespan of only another two-four years.

"A lot of the CMCs which currently occupy that space will disappear," he said.

"We believe our life in the market will be longer because of the specialist services we offer."

Power added that Ferguson Financial would be "taking on a new type of mis-selling" business before the end of the year, and after that would be looking to expand into other areas beyond financial services.